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My Kids Called Out My Savings Account. They Were Right

A low-interest savings account could cost you hundreds or even thousands in missed interest.

By Roxana Loomes , Edited by Melinda Sineriz, ABFP®

Updated Nov. 6, 2026

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Quick Read

At 0.01% APY, $25,000 earns about $2.50 a year. At 4.1% APY, the same money earns roughly $1,025.
The Federal Deposit Insurance Corp. (FDIC) national average savings rate is 0.38%, so even an "average" account leaves hundreds of dollars on the table.
Switching took under 10 minutes, all online. The only wait was for the money to move between banks.
At the national average savings rate of 0.38% (as of 06/15/26), $20,000 earns $76 a year. The same balance could earn up to nine times more with a SoFi Checking and Savings account. See SoFi®'s current rate.

One night at dinner, my teens asked me a simple question: "Is 4.1% a good APY?" They're 17 and 19, looking into their first savings accounts, and they'd found a high-yield option. "Sounds too good to be true," I replied. Then they asked what mine paid. Honestly, I had no idea. Turns out, it was 0.01%. On my $25,000 emergency fund, that was about $2.50 a year. At 4.1%, the same money would pay roughly $1,025.

What my kids said (and why I'd ignored it)

My kids weren't trying to lecture me. They were comparing options for their own first accounts, and they asked about the rate the way kids turn to Mom to make sure they're on track. Once we'd talked through the 4.1%, the next question was obvious: What does yours pay? I didn't have a good answer.

My reasons for not checking my rate weren't the best. I didn't see the point. For me, a savings account was where I kept my savings, and I never thought about it beyond that.

If that sounds familiar, you're in good company. The FDIC's national average savings rate is 0.38%, and some of the largest traditional banks pay as little as 0.01%. A good savings rate right now is anything above 3%. My kids, who have never owned a savings account, had somehow figured that out. I hadn't.

The math

My number: I moved $25,000 from an account paying 0.01% APY to one paying 4.1% APY. In the 6 months since, that balance has earned roughly $507 in interest. At my old rate, it would have earned about $1.25. That's a gap of about $506 in half a year, and about $1,022 over a full year.

Here's what the same switch is worth at other balances over one year. The last column shows the new account's earnings minus the old one's. That's the number to watch.

Balance	Old bank (0.01%)	National avg (0.38%)	New account (4.1%)	Annual difference
$5,000	$0.50	$19	$205	$204.50
$10,000	$1	$38	$410	$409
$20,000	$2	$76	$820	$818
$50,000	$5	$190	$2,050	$2,045

Note: These estimates assume each APY holds steady for a full year with no deposits or withdrawals. Savings rates can and do change, so your actual earnings will vary.

We did the research for you. Having your checking and savings accounts with the same financial institution can make money management a lot simpler. SoFi® was our 2026 award winner for Best Checking and Savings Combo because it delivers on interest and additional features. For example, you could earn up to 4.40% APY on your savings balance with direct deposit. (3.30% APY¹ with +1.10% APY Boost) for up to 6 months on new accounts.² SoFi also offers more special features than any other account combo we looked at: No account fees: No overdraft fees.³ No minimum balance fees. No monthly fees.⁴ Get paid up to two days early: Feel the magic of payday up to two days earlier — automatically — when you set up direct deposit.⁵ Access additional FDIC insurance up to $3M: Typically, single-member deposit accounts are federally insured up to $250,000. With SoFi, FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.⁶

Open an account with SoFi here.

How the switch went

The switch took under 10 minutes because I did everything online in one go. I opened the new account and transferred the money from my old bank.

The only snag was the wait. It took 3 days for the money to get to my new account, and there was nothing I could do to speed it up: Transfers between banks usually take 1-5 business days.

What I'd tell other parents

If you've had the same savings account for years and never looked at the rate, what are you waiting for? Find the APY on your latest statement or in your online banking and multiply it by the balance. If the result is a paltry few dollars a year, you have your answer. My only regret is that I didn't switch sooner.

As for taking advice from your kids: I always listen to mine, as long as the advice makes sense. This did. They had done their research, and they were right. Being a parent doesn't mean I know everything.

Your money is already saved. Now see how it could be earning you hundreds per year.

Bottom line

My old account paid 0.01%, about $2.50 a year on $25,000. The new one pays 4.1%, roughly $1,025 a year. That's a gap of more than $1,000, and closing it took under 10 minutes online. I wouldn't have done it if my teens hadn't asked about high-yield savings accounts.

If your savings account has sat untouched for years, check the rate today. The only cost? Your kids may lovingly tease you about it. I didn't mind.

Would You Spend Ten Minutes for $1,465?

That's roughly the year's difference on $40,000 between the national average and the up-to-4.00% rates available now. And ten minutes isn't a figure of speech. You just provide some information, like your name, address, Social Security number, and the account your deposit money's coming from. But rates are variable and follow the market, which is why the only number worth acting on is today's. Compare the current top accounts here.

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SoFi Checking and Savings

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APY

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Minimum Balance for APY

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Why We Like It

Limited-Time Offer: Earn a $50 or $400 cash bonus¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. plus a boosted up to 4.40% APY² Earn up to 4.40% Annual Percentage Yield (APY) on one SoFi Savings account with a 1.10% APY Boost (added to the 3.30% APY as of 10/20/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/27. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC. on Savings (3.30% APY¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. with +1.10% APY Boost) for up to 6 months when you open a new account and set up eligible direct deposits. Terms apply.
No account, overdraft, or monthly fees.⁴ We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a>.
Get your paycheck up to two days early with direct deposit.⁵ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Access additional FDIC insurance up to $3 million.⁶ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.
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FAQs

What is a good savings account interest rate right now?

Anything above 3% APY is competitive right now. The FDIC national average is 0.38%, and top high-yield accounts pay around 4% or a little more. Rates move, so do your research before you pick.

How do I move money from one bank to another?

Open the new account, then move the money by linking the two accounts online or sending an electronic transfer from your old bank. Allow 1-5 business days for the money to arrive. Leave your old account open until you've confirmed the money landed, especially if bills or direct deposits are tied to it.

Is a high-yield savings account safe?

Yes, as long as the bank is FDIC-insured or the credit union is NCUA-insured. Coverage is generally up to $250,000 per depositor, per bank, per ownership category. Confirm coverage before you deposit, since not every high-yield account is insured.